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The next DPI — how India can commoditise AI

India has proposed an expansion of the successful DPI concept into Artificial Intelligence through the establishment of low-cost AI computing, foundation models, and a Unified Intelligence Interface (UII). AI can become an easily available public utility through the IndiaAI Mission and contribute to innovation, technological sovereignty, and inclusive development.

31 Jul 2026 3 min read 29 views
The next DPI — how India can commoditise AI

Quick Revision

Why in news: The success of India in Digital Public Infrastructure (DPI) through programs like Aadhaar, UPI, and DEPA/Account Aggregator has led to discussions about applying the concept of DPI to Artificial Intelligence (AI). This aims at creating an affordable, interoperable, and accessible AI as a public digital utility and reducing reliance on expensive foreign AI solutions.

Background

  • India has emerged as a global leader in Digital Public Infrastructure (DPI) by successfully integrating:

  • Aadhaar for digital identity,

  • Unified Payments Interface (UPI) for instant digital payments, and

  • DEPA/Account Aggregator for consent-based data sharing.

  • This ecosystem has accelerated financial inclusion, Direct Benefit Transfers (DBTs), e-governance, startups, and digital commerce.

  • As Artificial Intelligence becomes a key driver of economic growth, India aims to replicate the DPI model by making AI infrastructure a public good instead of relying solely on expensive proprietary AI systems developed abroad.

  • The objective is to transform AI from an exclusive technology into an affordable, scalable, and inclusive public infrastructure.

Features

AI as the Fourth Digital Public Infrastructure

  • AI would complement existing DPI pillars of identity, payments, and data sharing.

  • Focus on making AI inference affordable and widely accessible rather than competing in expensive frontier AI model development.

Affordable Compute Infrastructure

  • Under the IndiaAI Mission (₹10,372 crore), over 38,000 GPUs have been onboarded, with a target of 1,00,000 GPUs.

  • Shared AI compute infrastructure would provide subsidised access to startups, researchers, and educational institutions.

Open-Source Foundation Models

  • Develop indigenous Large Language Models (LLMs) trained on public datasets such as legal judgments, agricultural information, and educational resources.

  • Support all 22 Scheduled Languages, reducing dependence on foreign AI platforms.

Unified Intelligence Interface (UII)

  • Proposed on the lines of UPI, providing a common AI API gateway.

  • It would enable interoperability, identity verification, consent management, billing, and AI safety standards across multiple AI service providers.

AI Token Economy

  • Introduce free monthly AI usage credits ("AI Tokens") for students, researchers, startups, and public institutions through Aadhaar-based verification.

  • Commercial users would pay market rates, ensuring financial sustainability.

Sectoral Applications

  • AI-enabled healthcare, personalised education, multilingual agricultural advisory, MSME productivity, and efficient public service delivery.

Challenges

High Infrastructure Costs

  • AI data centres require massive investments in GPUs, cloud infrastructure, and cooling systems.

Dependence on Imported Technologies

  • India remains heavily reliant on imported advanced semiconductors and AI chips.

Data Privacy and Security

  • Large-scale AI deployment raises concerns regarding privacy, cybersecurity, and protection of sensitive personal data.

Algorithmic Bias and Ethical Risks

  • AI systems may perpetuate discrimination, misinformation, or opaque decision-making without robust governance.

Energy Requirements

  • AI infrastructure requires reliable and affordable electricity, necessitating integration with renewable and nuclear energy sources.

Sustainable Financing

  • Long-term funding is needed to maintain public AI infrastructure while ensuring affordability.

Way forward 

  • Expand IndiaAI Mission by scaling up subsidised GPU infrastructure.

  • Create indigenously built multilingual foundational models using publicly accessible datasets.

  • Set up a Unified Intelligence Interface (UII), which will serve as a platform for providing AI services analogous to that of UPI.

  • Leverage open-source AI by way of open-weight licensing of publicly funded models.

  • Enhance the implementation of the DPDP Act and build robust Responsible AI governance.

  • Invest in AI-oriented energy infrastructure, semiconductor fabrication capabilities, and domestic cloud infrastructure.

Conclusion

The Indian Digital Public Infrastructure is an illustration of how digital public goods can reduce costs, foster competition, and increase access to critical services. Expanding this proven concept to Artificial Intelligence can lead to democratisation of access to computing resources, AI models, and intelligent services. With the help of low-cost computing infrastructure, open AI models, interoperable platforms like Unified Intelligence Interface, and effective governance, India can attain AI sovereignty and drive innovation through which the power of AI contributes to economic development and social progress rather than benefiting a handful of global tech firms.

UPSC Prelims Facts

Term: AI Digital Public Infrastructure (AI DPI)

Meaning: A public, interoperable AI ecosystem that provides affordable access to AI compute, foundation models, datasets, and AI services through shared digital infrastructure. It aims to make Artificial Intelligence a digital public utility, similar to Aadhaar, UPI, and DEPA, enabling inclusive innovation and widespread AI adoption.

Related: Digital Public Infrastructure (DPI); Aadhaar; UPI; DEPA; Account Aggregator; IndiaAI Mission; Unified Intelligence Interface (UII); Large Language Models (LLMs); Open-Source AI; Open-Weight Models; AI Inference; GPUs; DPDP Act, 2023; Responsible AI; India Semiconductor Mission; Digital India Programme.

Core Themes: Artificial Intelligence; Digital Public Infrastructure; Digital Governance; Technology Sovereignty; Digital Economy; Public Digital Goods; Open-Source AI; Inclusive Development; Data Governance; Responsible AI; Cybersecurity; Atmanirbhar Bharat; Science & Technology.

Prelims angle

Focus on key facts, terms and institutions mentioned above.

Mains angle

Link to relevant GS themes and frame analytical points.

Syllabus: Science & Technology, Science

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